Posts Tagged Equifax
What Is FICO and How Do I Fix My Credit Report?
Bud T Johnson asked:
In order to improve your credit scores which make up your credit reports it is important to understand the FICO business and scoring model.
FICO stands for Fair, Isaac and Company and was founded in 1956 by Bill Fair an engineer and Earl Isaac a mathematician. In 1958, they began selling the first credit scoring system these systems were used to help companies evaluate credit worthiness and they continued producing and selling these systems. In 1987, the company went public and created a new predictive general purpose credit scoring model affectionately known as the FICO score. This score was originally named the Beacon score and was used to determine which borrowers were most likely to default on a loan. In 2003, the companies name was changed to the Fair Isaac Corporation.
The general purpose FICO model was adopted by all three major credit bureaus Equifax, Transunion, and Experian. The FICO ranges between a low of 300 and a high of 850. The higher the score the better credit risk a borrower is considered. The FICO scoring model uses five factors to determine the likelihood of default. The five factors used to create your FICO score are: payment history; outstanding balances; length of history; type of credit; and inquires. The overall score is a weighted average of each of these factors. FICO breaks down with 35% of your overall result related to payment history, outstanding balances make up 30% of your result, the length of credit history has a 15% impact on your overall result, the type of credit has a 10% impact on your result, and the amount of inquiries accounts for the final 10% of your overall credit scores. Generally, a credit score of 720 and above is considered excellent, 680 – 720 is considered good, 620 – 680 is considered fair, and 619 and below is considered poor.
In 2006, the three credit bureaus created a company called VantageScore Solutions. This company was created to start a new credit scoring model to compete with FICO. The two companies have been in ongoing litigation regarding the two scoring methods and the results have not been finalized. However, a majority of businesses and lenders still use FICO as the main credit scoring model.
As a credit repair specialist I hear “Fix My Credit Report” all the time. In order to help achieve the highest credit results possible it is imperative that all consumers understand the FICO model.
Earl
In order to improve your credit scores which make up your credit reports it is important to understand the FICO business and scoring model.
FICO stands for Fair, Isaac and Company and was founded in 1956 by Bill Fair an engineer and Earl Isaac a mathematician. In 1958, they began selling the first credit scoring system these systems were used to help companies evaluate credit worthiness and they continued producing and selling these systems. In 1987, the company went public and created a new predictive general purpose credit scoring model affectionately known as the FICO score. This score was originally named the Beacon score and was used to determine which borrowers were most likely to default on a loan. In 2003, the companies name was changed to the Fair Isaac Corporation.
The general purpose FICO model was adopted by all three major credit bureaus Equifax, Transunion, and Experian. The FICO ranges between a low of 300 and a high of 850. The higher the score the better credit risk a borrower is considered. The FICO scoring model uses five factors to determine the likelihood of default. The five factors used to create your FICO score are: payment history; outstanding balances; length of history; type of credit; and inquires. The overall score is a weighted average of each of these factors. FICO breaks down with 35% of your overall result related to payment history, outstanding balances make up 30% of your result, the length of credit history has a 15% impact on your overall result, the type of credit has a 10% impact on your result, and the amount of inquiries accounts for the final 10% of your overall credit scores. Generally, a credit score of 720 and above is considered excellent, 680 – 720 is considered good, 620 – 680 is considered fair, and 619 and below is considered poor.
In 2006, the three credit bureaus created a company called VantageScore Solutions. This company was created to start a new credit scoring model to compete with FICO. The two companies have been in ongoing litigation regarding the two scoring methods and the results have not been finalized. However, a majority of businesses and lenders still use FICO as the main credit scoring model.
As a credit repair specialist I hear “Fix My Credit Report” all the time. In order to help achieve the highest credit results possible it is imperative that all consumers understand the FICO model.
Earl
Deleting Bad Credit Items on Your Credit Report
Bob Pering asked:
Deleting bad credit items on your credit report is definitely a worthwhile pursuit. It is possible to improve your credit scores anywhere from 100 to 200 points or more, by removing derogatory information from your credit reports.
The first step is to review your reports so you know where the problems are. Start by getting copies of your reports from the three major credit bureaus. The three bureaus are Equifax, Experian, and Transunion.
If you have not taken advantage of your free annual credit report this year, contact Annual Credit Report or phone 1-877-322-8228. You can also mail your request to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
If you have already received your free reports for this year, contact the three bureaus individually for your reports. You will be required to pay a small fee for each report.
Experian PO Box 740241 Atlanta, GA 30374
Equifax PO Box 2002 Allen, TX 75013
Transunion PO Box 2000 Chester, PA 19022
The next step is to review them carefully, looking for errors, omissions, and inaccurate items. Make note of all you find. First check the spelling of your name and verify that the addresses they show you’ve lived at are correct.
Then look for items that are incorrect or inaccurate. Pay particular attention to: derogatory items still showing even though they should have dropped off your report by now (most derogatory items can only be reported for seven years, bankruptcies for ten years). Also look for accounts that do not belong to you and accounts that show a balance due even though they have been paid off.
Deleting any bad credit items you discover is done by sending a letter to the credit bureau disputing any incorrect or inaccurate items you find. The credit bureau then forwards your dispute to the creditor that reported the item, and asks them to verify the legitimacy of the reported item.
If the creditor responds that the report is accurate, then the item stays on your report and is not removed. However, if the creditor does not respond to the dispute within 30 days of receipt, the item, by law, must be removed from the report.
It is possible to improve your credit scores anywhere from 100 to 200 points or more, by removing derogatory information from your credit reports. Deleting bad credit items on your credit report is definitely a worthwhile pursuit.
Martha
Deleting bad credit items on your credit report is definitely a worthwhile pursuit. It is possible to improve your credit scores anywhere from 100 to 200 points or more, by removing derogatory information from your credit reports.
The first step is to review your reports so you know where the problems are. Start by getting copies of your reports from the three major credit bureaus. The three bureaus are Equifax, Experian, and Transunion.
If you have not taken advantage of your free annual credit report this year, contact Annual Credit Report or phone 1-877-322-8228. You can also mail your request to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
If you have already received your free reports for this year, contact the three bureaus individually for your reports. You will be required to pay a small fee for each report.
Experian PO Box 740241 Atlanta, GA 30374
Equifax PO Box 2002 Allen, TX 75013
Transunion PO Box 2000 Chester, PA 19022
The next step is to review them carefully, looking for errors, omissions, and inaccurate items. Make note of all you find. First check the spelling of your name and verify that the addresses they show you’ve lived at are correct.
Then look for items that are incorrect or inaccurate. Pay particular attention to: derogatory items still showing even though they should have dropped off your report by now (most derogatory items can only be reported for seven years, bankruptcies for ten years). Also look for accounts that do not belong to you and accounts that show a balance due even though they have been paid off.
Deleting any bad credit items you discover is done by sending a letter to the credit bureau disputing any incorrect or inaccurate items you find. The credit bureau then forwards your dispute to the creditor that reported the item, and asks them to verify the legitimacy of the reported item.
If the creditor responds that the report is accurate, then the item stays on your report and is not removed. However, if the creditor does not respond to the dispute within 30 days of receipt, the item, by law, must be removed from the report.
It is possible to improve your credit scores anywhere from 100 to 200 points or more, by removing derogatory information from your credit reports. Deleting bad credit items on your credit report is definitely a worthwhile pursuit.
Martha
How To Get Rid Of Bad Information On Your Credit Report By Writing Letters
Helen Hecker asked:
Assuming you already have a copy of your annual credit report you may have already found some errors that should be removed. Errors should always be a big concern because they can and probably have affected your credit score, also called a FICO. You can repair your credit with a little bit of help.
It may seem like a lot of work but it’s really easy. The hardest part is actually sitting down to do it. You’ll need to check all three credit bureaus to make sure the same error isn’t on all three but if you just have one credit report, start with that one.
First make a list of any and all errors that you find on your personal credit report. These could be in the form of personal information such as birth date or more likely there will be information that you know not to be true such as late payments or no payments recorded etc. If you think there is any possibility that you could be wrong check your past history with the creditor in question first.
You want to make sure you are right before you make the request to have any information removed from your credit report.
You will be sending the letter only to the credit bureau mentioned on the report, which would be Esperian, Equifax or TransUnion. You don’t want to sound angry in the letter, just be matter-of-fact, straightforward and business-like. Just outline the facts – name of creditor, dates, and the error(s) or problem(s) you’re finding on the credit report.
Here is a sample letter:
Date:
To whom it may concern at Esperian (or other credit bureau):
I recently acquired a copy of my credit report and found some errors that I’d like to dispute. I am enclosing documentation to prove the information is incorrect and would like a correction. I value my good standing and good credit history and want to maintain a good credit rating and credit score.
Name the creditor along with the reference date including the month, day and year if possible.
The error(s) I have found are:
I’m including copies of my payment record, with a (cancelled check or online payment print-outs or any other documentation that you have).
I would appreciate any attention to the matter as I would like my credit report to be accurate. I’m sure you understand that credit bureaus need to include only information that is accurate in my file.
Thank you for taking a look at my letter and file and hopefully making the necessary corrections so I can continue to maintain my good credit standing. Please let me know that my file has been reviewed and what action has been taken. I would also like a copy of my corrected credit report sent to the enclosed address. Thank you.
Sincerely,
Besides your full name as shown on the report, include you mailing address, a copy of the report that you have, your social security number, driver’s license photocopy and any other documentation such as a cancelled check or online payment confirmations.
Make a copy of the letter for yourself and a copy of any enclosures with the letter. Send the dispute letter by certified mail with a ‘return receipt’ requested. Then make sure to get the free credit reports from the other two main credit bureaus or reporting agencies to make sure they don’t have the same incorrect information. You can get free instant credit reports from the other two online.
Jessie
Assuming you already have a copy of your annual credit report you may have already found some errors that should be removed. Errors should always be a big concern because they can and probably have affected your credit score, also called a FICO. You can repair your credit with a little bit of help.
It may seem like a lot of work but it’s really easy. The hardest part is actually sitting down to do it. You’ll need to check all three credit bureaus to make sure the same error isn’t on all three but if you just have one credit report, start with that one.
First make a list of any and all errors that you find on your personal credit report. These could be in the form of personal information such as birth date or more likely there will be information that you know not to be true such as late payments or no payments recorded etc. If you think there is any possibility that you could be wrong check your past history with the creditor in question first.
You want to make sure you are right before you make the request to have any information removed from your credit report.
You will be sending the letter only to the credit bureau mentioned on the report, which would be Esperian, Equifax or TransUnion. You don’t want to sound angry in the letter, just be matter-of-fact, straightforward and business-like. Just outline the facts – name of creditor, dates, and the error(s) or problem(s) you’re finding on the credit report.
Here is a sample letter:
Date:
To whom it may concern at Esperian (or other credit bureau):
I recently acquired a copy of my credit report and found some errors that I’d like to dispute. I am enclosing documentation to prove the information is incorrect and would like a correction. I value my good standing and good credit history and want to maintain a good credit rating and credit score.
Name the creditor along with the reference date including the month, day and year if possible.
The error(s) I have found are:
I’m including copies of my payment record, with a (cancelled check or online payment print-outs or any other documentation that you have).
I would appreciate any attention to the matter as I would like my credit report to be accurate. I’m sure you understand that credit bureaus need to include only information that is accurate in my file.
Thank you for taking a look at my letter and file and hopefully making the necessary corrections so I can continue to maintain my good credit standing. Please let me know that my file has been reviewed and what action has been taken. I would also like a copy of my corrected credit report sent to the enclosed address. Thank you.
Sincerely,
Besides your full name as shown on the report, include you mailing address, a copy of the report that you have, your social security number, driver’s license photocopy and any other documentation such as a cancelled check or online payment confirmations.
Make a copy of the letter for yourself and a copy of any enclosures with the letter. Send the dispute letter by certified mail with a ‘return receipt’ requested. Then make sure to get the free credit reports from the other two main credit bureaus or reporting agencies to make sure they don’t have the same incorrect information. You can get free instant credit reports from the other two online.
Jessie
Small Business Credit Reports and Scores
Adam Tijerina asked:
You know you have personal credit reports and credit scores, but were you aware that if you run a business, you also have a business credit report and score? If you run a small business, find out why it is important to access your own reports and those of your customers, vendors and suppliers and how that information can affect whether or not you get access to an increased credit line or more stringent credit terms for your company.
Your small business credit report and score can indicate to a potential customer, vendor or supplier your credit worthiness and can have factor in the what kind of credit terms you get or if you get any financing at all. They will see how many accounts you have opened, how many of those accounts are past due, the average amount you owe, and whether you have ever been past due on any of your accounts.
You can also get access to public records such as bankruptcies, judgments, liens, alternate company names and other DBAs all on a small business credit report.
All this information is then compiled and given a credit risk score by Equifax which can indicate how likely a company will fall behind over 90 days on their bills or result in a charge off over the next year. Wouldn’t this information be useful in deciding on who to do business with?
Equifax also provides a business failure score which can predict how likely a big business will fail and have to file bankruptcy over the next year.
There are no free business credit reports as their are with personal credit reports. You can chalk up the cost of this information as a cost of doing business which can save you thousands of dollars by going with a responsible vendor or supplier or new customer who will not default on their payments.
Buying small business credit reports and scores can help you make smart decisions about who you decide to do business with and can prevent you from working with an unreliable customer, vendor, or supplier who has a lousy payment history and keep your cash flow low.
Allison
You know you have personal credit reports and credit scores, but were you aware that if you run a business, you also have a business credit report and score? If you run a small business, find out why it is important to access your own reports and those of your customers, vendors and suppliers and how that information can affect whether or not you get access to an increased credit line or more stringent credit terms for your company.
Your small business credit report and score can indicate to a potential customer, vendor or supplier your credit worthiness and can have factor in the what kind of credit terms you get or if you get any financing at all. They will see how many accounts you have opened, how many of those accounts are past due, the average amount you owe, and whether you have ever been past due on any of your accounts.
You can also get access to public records such as bankruptcies, judgments, liens, alternate company names and other DBAs all on a small business credit report.
All this information is then compiled and given a credit risk score by Equifax which can indicate how likely a company will fall behind over 90 days on their bills or result in a charge off over the next year. Wouldn’t this information be useful in deciding on who to do business with?
Equifax also provides a business failure score which can predict how likely a big business will fail and have to file bankruptcy over the next year.
There are no free business credit reports as their are with personal credit reports. You can chalk up the cost of this information as a cost of doing business which can save you thousands of dollars by going with a responsible vendor or supplier or new customer who will not default on their payments.
Buying small business credit reports and scores can help you make smart decisions about who you decide to do business with and can prevent you from working with an unreliable customer, vendor, or supplier who has a lousy payment history and keep your cash flow low.
Allison
How to get a Great Credit Score with Equifax or Trans Union
pworkingston asked:
Things to remember to keep a high credit score with Equifax and Trans Union Canada by Charles Bristoll
Rebecca
Free Credit Report Basics
Rachel Frost asked:
The best way to understand all there is to know about free credit reports is to see a review of free credit report basics. From the very start we would like to inform you that none of this is intricate or complicated and that you do not need to know how a credit reporting score is created to make a beneficial impact on your own personal credit. What we do want to tell you is great news and all you have to do is keep reading! As you continue to read through this credit reporting review about the basics of free reports you’ll walk away with a better understanding of what can be obtained from viewing your very own free report.
Get You on the Right Path
To speak honestly you need to know exactly what is on your report and the easiest way is to request a free report today. This will get you on the right path to better understanding what is on that little personal credit file. We have created this review of free credit report basics to give you a better tool in which to see exactly what’s on your report and to be able to do something about the negative items. You do not need to do anything about the positive reporting items as these are beneficial to your bottom line credit score and our wonderful to see!
You Need to be in the Know
Before we break down what is actually contained within a free credit report we would like to tell you one basic theory about credit reports. Many individuals feel that they to do not need to see their report at all? We are here to tell you today that it takes action regardless of how well you have run your personal financial business and regardless of how high your current credit score is these days. One of the biggest factors and benefits for obtaining your free report at least once a year is so that you can see any entry or negative report on your credit report that you did not create yourself.
Now we will show you what’s contained in a free basic report regardless of the reporting institutions such as Equifax, Experian and TransUnion.
Free Credit Report Basics
Identification and Employment Data -Personal information-Name, address, birth date, Social Security Number, and current and or most recent employer(s). Payment History- The accounts you have done business with in the past with areas that show how much credit was extended to you and how well or how well not did you pay these creditors. Inquiries-Running record of the lenders and creditors as well as anyone else that wanted to look at your credit report for business or personal. Public Record Information- Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens.
Victoria
The best way to understand all there is to know about free credit reports is to see a review of free credit report basics. From the very start we would like to inform you that none of this is intricate or complicated and that you do not need to know how a credit reporting score is created to make a beneficial impact on your own personal credit. What we do want to tell you is great news and all you have to do is keep reading! As you continue to read through this credit reporting review about the basics of free reports you’ll walk away with a better understanding of what can be obtained from viewing your very own free report.
Get You on the Right Path
To speak honestly you need to know exactly what is on your report and the easiest way is to request a free report today. This will get you on the right path to better understanding what is on that little personal credit file. We have created this review of free credit report basics to give you a better tool in which to see exactly what’s on your report and to be able to do something about the negative items. You do not need to do anything about the positive reporting items as these are beneficial to your bottom line credit score and our wonderful to see!
You Need to be in the Know
Before we break down what is actually contained within a free credit report we would like to tell you one basic theory about credit reports. Many individuals feel that they to do not need to see their report at all? We are here to tell you today that it takes action regardless of how well you have run your personal financial business and regardless of how high your current credit score is these days. One of the biggest factors and benefits for obtaining your free report at least once a year is so that you can see any entry or negative report on your credit report that you did not create yourself.
Now we will show you what’s contained in a free basic report regardless of the reporting institutions such as Equifax, Experian and TransUnion.
Free Credit Report Basics
Identification and Employment Data -Personal information-Name, address, birth date, Social Security Number, and current and or most recent employer(s). Payment History- The accounts you have done business with in the past with areas that show how much credit was extended to you and how well or how well not did you pay these creditors. Inquiries-Running record of the lenders and creditors as well as anyone else that wanted to look at your credit report for business or personal. Public Record Information- Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens.
Victoria